Business

Kraft profits boosted by Cadbury purchase

11:53 am on 9 August 2010

US food giant Kraft has reported higher-than-expected first quarter profit, helped in part by its purchase of UK confectionery maker Cadbury.

Kraft's after-tax profit rose $US937 million, up 13% from $US827 million a year earlier, the BBC reports.

Net revenue rose 25% to $US12.3 billion, boosted by the addition of Cadbury, which it acquired in a controversial takeover at the beginning of the year.

Kraft was criticised for breaking pledges over Cadbury plant closures.

Cadbury chief executive and chairman Irene Rosenfield says the result shows the potential of the combined company.

She said that integration was progressing extremely well and that about one third of Kraft's top 50 executives are from Cadbury.